Joe Purchased Office Equipment for $1,250 Cash

question 81

Multiple Choice

Joe purchased office equipment for $1,250 cash.What is the effect on accounts?

• A) One asset account increases; one liability account increases.
• B) Two asset accounts increase.
• C) One asset account increases; another asset account decreases.
• D) One asset account increases; one equity account increases.

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Definitions:

Reasoning Ability

The capacity to think logically, solve problems, and make rational decisions.

Spatial Abilities

The capacity to understand, reason, and remember the spatial relations among objects or space.

Delivery

The process of giving birth to a baby or the action of delivering goods or services.

Labor

Occurs at about 40 weeks of pregnancy, or 38 weeks after conception; also known as childbirth.